New Regulations on the Demolition of Prefabricated Panel Houses

The new regulations on the demolition of prefabricated panel houses mainly cover the scope of demolition, compensation methods, and policy objectives, as detailed below:

I. Scope of Demolition

1. Types of Houses Prioritized for Demolition

   • Grade D Dangerous Houses: Houses that, upon professional assessment, meet conditions such as foundation settlement exceeding 5 centimeters, cracks in load-bearing walls wider than 1 millimeter, and seismic resistance levels less than 70% of current standards, are subject to mandatory demolition.
   • Prefabricated Panel Houses Built Before the 1980s: Due to a general design lifespan of 30-50 years, 67% of existing houses exhibit structural aging, and 41% have hidden fire hazards, making them key targets for demolition.
   • Houses Affecting Urban Planning: Residential buildings located within the planning scope of major infrastructure projects such as subways and elevated highways need to be demolished to meet urban development needs.

2. Conditions for Demolition

   • Demolition and compensation will only be initiated if a house is assessed as dangerous or included in urban demolition plans; if the house is safe, it will only undergo renovation (such as wall painting and water and electricity replacement) to avoid resource waste.

II. Compensation Methods

1. Monetary Compensation

   • The compensation amount is determined by a third-party assessment agency, referencing the market prices of surrounding second-hand homes, and includes house value, decoration costs, moving expenses, temporary rental fees, and on-time signing bonuses.
   • The compensation standard is not less than 110% of the market price of surrounding commercial housing (e.g., the assessed price of Dong'an First Village in Shanghai reached 135,000 yuan/㎡, 15% higher than the second-hand housing price in the same area).
   • Attention should be paid to the depreciation of the house age, and all promises must be included in written agreements to avoid disputes arising from verbal commitments.

2. Property Rights Exchange

   • Two options are provided: relocation to the original site or异地安置 (relocation to another site), with the difference in area between the old and new houses being settled by mutual compensation.
   • Some regions offer proportional replacement (e.g., residential buildings in Handan are replaced at a ratio of 1:1.1, and rural homestead houses at a maximum of 1:1.2).
   • The location, area, layout, and delivery date of the replacement housing must be clearly specified to avoid risks such as excessive common area or delayed delivery.

3. Housing Voucher Settlement

   • The government issues housing purchase vouchers (housing vouchers) that can be used to offset housing payments at designated commercial housing developments, with some regions offering additional subsidies.
   • Housing vouchers have an expiration date and become invalid after expiration; any excess amount must be paid by the individual.

III. Policy Objectives
Through precise and orderly demolition and reconstruction, balance social equity and cultural heritage preservation, avoid resource waste and environmental damage, and promote the transformation of urban renewal from extensive outward expansion to intensive inward development.